Quantum Machines raises $170M at a $700M valuation as quantum computing surges
The Israeli startup secures one of the industry's largest funding rounds amid rapid technological breakthroughs.
Israeli quantum computing startup Quantum Machines has raised $170 million in a Series C funding round, bringing its total investment to $280 million. Most of the funds will go directly into the company’s operations. According to estimates, the round, first revealed by Calcalist, values the company at $700 million. Quantum Machines stated that the round was significantly oversubscribed.
PSG Equity led the round, with participation from Red Dot Capital Partners, Intel Capital, and other existing investors, making it one of the largest funding rounds in the quantum computing industry. Key investors also include TLV Partners, which led the company’s seed round in 2018, as well as Battery Ventures and Avigdor Willenz.
The year 2024 was a turning point for quantum computing, with breakthroughs that set the stage for continued advancement. Google’s Willow chip demonstrated major hardware-level performance improvements, multiple companies joined IBM in surpassing the 1,000-qubit threshold, and researchers made significant progress in quantum error correction. However, Nvidia CEO Jensen Huang cautioned that large-scale quantum computing remains years away.
Despite these uncertainties, Quantum Machines has emerged as one of the most prominent players in the field, both globally and in Israel.
In a conversation with Calcalist, Dr. Yonatan Cohen, co-founder and CTO of Quantum Machines, responded to Huang’s remarks:
“Quantum computers will be available much sooner than Jensen suggested. Nvidia itself is investing heavily in the field, and many others believe in its potential. We develop and sell technology to anyone building a quantum computer, and our market exists several years ahead of the actual quantum hardware. We know what needs to be developed for the coming years and beyond, and we rely on strong customer feedback to guide our vision.”
Quantum Machines was founded in early 2018 by Dr. Itamar Sivan (CEO), Dr. Yonatan Cohen (Chief Technology Officer), and Dr. Nissim Ofek (VP of R&D). All three hold PhDs in physics with specializations in quantum computing and quantum electronics, having conducted their research at the Weizmann Institute’s Submicron Center under the mentorship of Prof. Moty Heiblum. The company employs 170 people, with about half based in Israel and the rest in Denmark, Germany, Japan, the U.S., and other countries.
Quantum Machines’ hybrid control technology enables the execution of highly complex computational tasks across all types of quantum computers. This versatility has driven rapid adoption by a majority of quantum computing companies worldwide. Additionally, the company’s strategic collaboration with Nvidia led to the joint development of DGX Quantum, a system that integrates Quantum Machines’ real-time quantum control with Nvidia’s high-speed computing capabilities, accelerating progress toward practical quantum computing.
In 2023, Quantum Machines established the Israel Quantum Computing Center (IQCC), a research facility housing three quantum computers. Located at Tel Aviv University, IQCC was built in collaboration with Israel’s Innovation Authority and serves both academic researchers and advanced R&D centers in Israel and abroad.
IQCC provides accessible quantum computing resources for Israeli academia and industry while also welcoming international researchers and developers. By offering an open and advanced research platform, Quantum Machines aims to accelerate applied quantum computing and foster collaboration with industry leaders. The center strengthens Israel’s position as a key player in the global quantum computing race.
“The quantum computing ecosystem has expanded rapidly, with hundreds of teams worldwide pushing the boundaries in parallel,” said Dr. Itamar Sivan, co-founder and CEO of Quantum Machines. “Breakthroughs are happening at an unprecedented pace, and widespread adoption of quantum computers is just around the corner. Quantum is one of the biggest and most important technological races of our generation, and we are honored to be at the forefront, delivering the core infrastructure to make it a reality.”
